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This article was originally published on June 1, 2022 and has been updated to reflect recent legal developments.
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning. (Article 86 of the Labor Code, as amended)
Rule II, Book 3 of the Omnibus Rules Implementing the Labor Code provides that the rule on Night Shift Differential shall apply to all employees except:
- Those of the government and any of its political subdivisions, including government-owned and/or controlled corporations;
- Those of retail and service establishments regularly employing not more than five (5) workers;
- Domestic helpers and persons in the personal service of another;
- Managerial employees as defined in Book Three of this Code;
- Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid in a fixed amount for performing work irrespective of the time consumed in the performance thereof.
Additional Compensation
Where an employee is permitted or suffered to work on a period covered after his work schedule, he shall be entitled to his regular wage plus at least twenty-five percent (25%) and an additional amount of no less than ten percent (10%) of such overtime rate for each hour or work performed between 10 p.m. to 6 a.m. (Section 3, Rule II of the Omnibus Rules Implementing the Labor Code)
Additional Compensation on Scheduled Rest Day/Special Holiday
An employee who is required or permitted to work on the period covered during the rest days and/or special holidays not falling on regular holidays, shall be paid a compensation equivalent to his regular wage plus at least thirty-percent (30%) and an additional amount of not less than ten percent (10%) of such premium pay rate for each hour of work performed. (Section 4, Rule II of the Omnibus Rules Implementing the Labor Code)
Additional Compensation on Regular Holidays
For work on the period covered during regular holidays, an employee shall be entitled to his regular wage during these days plus an additional compensation of no less than ten percent (10%) of such premium rate for each hour of work performed. (Section 5, Rule II of the Omnibus Rules Implementing the Labor Code)
Guide Computation for Night Shift Differential
|
Work on: |
Equivalent pay |
|
Ordinary day, night shift |
1 x 1.1 = 1.1 or 110% |
|
Rest day, night shift |
1.3 x 1.1 = 1.43 or 143% |
|
Special (non-working) day, night shift |
1.3 x 1.1 = 1.43 or 143% |
|
Special (non-working) day, rest day, night shift |
1.5 x 1.1 = 1.65 or 165% |
|
Double special (non-working) day, night shift |
1.5 x 1.1 = 1.65 or 165% |
|
Double special (non-working) day, rest day, night shift |
1.95 x 1.1 = 2.145 or 214.5% |
|
Regular holiday, night shift |
2 x 1.1 = 2.2 or 220% |
|
Regular holiday, rest day, night shift |
2.6 x 1.1 = 2.86 or 286% |
|
Double holiday, night shift |
3 x 1.1 = 3.3 or 330% |
|
Double holiday, rest day, night shift |
3.9 x 1.1 = 4.29 or 429% |
|
Ordinary day, night shift, OT |
1 x 1.1 x 1.25 = 1.375 or 137.5% |
|
Rest day, night shift, OT |
1.3 x 1.1 x 1.3 = 1.859 or 185.9% |
|
Special (non-working) day, night shift, OT |
1.3 x 1.1 x 1.3 = 1.859 or 185.9% |
|
Special (non-working) day, rest day, night shift, OT |
1.5 x 1.1 x 1.3 = 2.145 or 214.5% |
|
Double special (non-working) day, night shift, OT |
1.5 x 1.1 x 1.3 = 2.145 or 214.5% |
|
Double special (non-working) day, rest day, night shift, OT |
1.95 x 1.1 x 1.3 = 2.7885 or 278.85% |
|
Regular holiday, night shift, OT |
2 x 1.1 x 1.3 = 2.86 or 286% |
|
Reg. holiday, rest day, night shift, OT |
2.6 x 1.1 x 1.3 = 3.718 or 371.8% |
|
Double holiday, night shift, OT |
3 x 1.1 x 1.3 = 4.29 or 429% |
|
Double holiday, rest day, night shift, OT |
3.9 x 1.1 x 1.3 = 5.577 or 557.7% |
Source: 2024 Handbook on Workers’ Statutory Monetary Benefits
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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